Lodging Econometrics (LE) has released its Q1 2024 Hotel Construction Pipeline Trend Report for Europe. According to LE analysts, the region’s total pipeline stands at 1,705 projects and 253,777 rooms at the close of the first quarter.
As of the first quarter’s end, 45% of the hotel projects in Europe’s total pipeline are under construction. This accounts for 762 projects and 117,815 rooms. Additionally, 411 projects with 60,356 rooms are scheduled to start construction in the next 12 months. Another 532 projects with 75,606 rooms are in the early planning stage, slightly below the record high reported in Q1 2023.
Upper upscale and upscale projects in Europe’s hotel construction pipeline have increased compared to 2023 totals. Upper upscale projects are up 13% year-over-year (YOY) with 271 projects and 45,122 rooms. Upscale projects are up 5% YOY with 358 projects and 57,153 rooms. Upper midscale projects closed the first quarter with 305 projects and 46,020 rooms. These three chain scales account for 55% of the projects in the region’s total construction pipeline.
The United Kingdom leads the European countries with the greatest number of projects in the pipeline at Q1. It has 321 projects and 45,257 rooms. Germany follows with 180 projects and 28,816 rooms. France has 130 projects and 14,268 rooms. Portugal has 120 projects and 15,020 rooms. Turkey has 116 projects and a record 18,277 rooms. These five countries account for 51% of the projects and 48% of the rooms in the region’s total pipeline at Q1.
European cities with the largest pipelines by project count at the close of the first quarter are London with 80 projects and 14,987 rooms, Istanbul with 51 projects and 8,814 rooms, Lisbon with 37 projects and 4,349 rooms, Dublin with 27 projects and 5,254 rooms, and Dusseldorf with 26 projects and 4,798 rooms.
During the first quarter of 2024, 45 new hotels with 5,961 rooms opened throughout Europe. An additional 281 new hotels with 39,129 rooms are forecast to open in Q2-Q4. LE analysts forecast a total of 326 new hotels with 45,090 rooms to open by year-end 2024. Looking ahead, the LE forecast for new openings in Europe will rise with 367 new hotels with 52,605 rooms anticipated to open in 2025.
